easy · Volume Spread Analysis background-trend-context
During a sharp downtrend, a wide-spread down-bar appears on ultra-high volume but closes in the upper third of its range.
What does this suggest about the immediate future of the trend?
- The downtrend is gaining momentum and will collapse further.
- Professional sellers are clearing out their remaining long positions.
- The decline is likely to slow or stop as professional buying absorbs the panic.
- The market is in a no-demand phase and will drift sideways.
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